Do You Have Any Tips On Buying Car Insurance?

Do you have any tips on buying car insurance? You need liability insurance for your automobile, but more coverage can help you in many different ways. Car insurance is pretty standard from company to company,...

Car insurance is pretty standard from company to company, when it comes to what is covered. If you are insured then we are going to pay to get your car fixed. So the next thing you have to look out for is definitely cost, but more importantly what kind of claim service the company offers. Thus, when you are buying car insurance and really any insurance, all you are buying is a promise from the company to pay your claim. So when you are looking for that, you need to look at the strength of the company. It's financial strength. Will they be able to pay your claim? Then, you look at their reputation. They may be able to and choose not to and then just ease off by getting it done. Obviously, State Farm is the biggest in the country. We insure one out of every five cars on the road, so we are real good at it. We handle over 38,000 claims a day. So when there is a wreck, we are pretty good at getting people back on their feet. Other companies are good as well and that's the important thing to look at. How easy is it to file a claim? How easy is the claim settlement process?

In the State of Texas, what the state requires is that a driver carries liability insurance for hitting somebody else. I can carry a policy that will only pay to fix your car and your bodily injury, if I hit you. It does me no other good. It won't pay to fix my car and it won't pay for my injuries, anything like that. So that is kind of the bare minimum.

From there, if you finance your car, almost all finance companies are going to require that you carry insurance to fix your car as well. It makes sense because they have a vested interest in your car not being smashed up. That is where you can have comprehensive and collision insurance that comes in and pays to fix your car. Other optional coverages are medical payments and PIP that would pay for you and the people in your vehicle for medical payments and lost wages, if you are injured in a covered car accident. Other coverages include uninsured motorist coverage. That's optional. If somebody hits your car, and they don't have insurance, or it's a hit and run, then your uninsured motorist coverage can kick in and the insurance company will then pay to fix your car. At that point, you're buying insurance for people out there who don't have it. Unfortunately, in Texas, there are a bunch of people who choose to drive without it, even though it's illegal. They have that choice.

As for Rental Car Reimbursement Insurance, if you are in a covered accident, it would pay for your rental car up to a certain dollar limit that you get to choose $20-25, $30-35 whatever per day, up to a maximum typically of 30 days. There are many differences. Say you pick a $25 a day benefit, the most it would pay out is 750 bucks. That is different than us paying for you renting a car and getting insurance for that car. If you have full coverage with an insurance company and you rent a car, your insurance covers you when renting that car. So a lot of people ask the question, should I buy the insurance from the rental place? That depends on you, but if you do, you are buying more coverage. You are buying extra coverage because you are already covered upfront.
What I can tell you in my experience is yes, you do have to pay your deductible, but you would have to pay your deductible if you wrecked your own car. So it does not really matter if you are in a rental car or not. State Farm would not only be on the hook to fix that rental car that you wrecked, but we also have to pay the rental company for their lost income, since they can't rent their car while it is being repaired. All of that is included in your regular auto policy.

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